AbbVie reaches deal to acquire Shire

North Chicago, IL-AbbVie has reached a deal to buy Shire for $89.56 per share, or about $54.6 billion.

The transaction, which represents a 53% premium to the Irish drug maker’s closing price on May 2, just prior to AbbVie making its first proposal, comprises $41.71 in cash and 0.8960 new AbbVie shares.

AbbVie’s Chief Executive Officer (CEO), Richard Gonzalez, said that the combination will create “a unique, diversified biopharmaceutical company” that will “benefit from a best-in-class product development platform, a stronger pipeline, and more enhanced research and development capabilities.

“(The merger) represents an exciting fit of two complementary businesses that will create a new market leader in specialty pharmaceuticals,” said Susan Kilsby, Shire chairman.

AbbVie will gain various therapies for rare disease through the acquisition. Shire is developing experimental drugs lifitegrast, for dry eye, and Premiplex (mecasermin rinfabate) for the prevention of retinopathy of prematurity.

AbbVie also confirmed that arrangements were made to retain 30 senior Shire employees.

Shire’s CEO, Flemming Ornskov-who agreed to lead the integration on behalf of the Irish drug maker-will oversee the creation of a rare diseases business unit in the new company and report directly to Gonzalez, while Kilsby and Shire board member Dominic Blakemore will join the AbbVie board.

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